Bitcoin Price Reaches Yearly High
The price of bitcoin (BTCUSD) has surged to its highest level this year, marking a significant increase of almost 90%. This rise comes as investors show renewed interest in the largest cryptocurrency by market cap, following a turbulent period of 13 months for the crypto markets.
Key Takeaways
- Bitcoin’s price surpassed $31,000, reaching a year-to-date high.
- BlackRock’s ETF application has sparked increased investor interest in bitcoin.
- The SEC approved a two-times leveraged ETF set to commence trading soon.
While still below its all-time high of about $68,000 in November 2021, bitcoin’s price has broken the $31,000 mark for the first time since April, briefly hitting $31,005. Prior to this, the cryptocurrency had not traded above $30,000 since June 2022, before the challenges that led to the collapse of FTX in November.
Factors Driving Bitcoin Price Surge
Bitcoin has experienced a resurgence in interest following asset management giant BlackRock’s application for a spot bitcoin exchange-traded fund. BlackRock’s filing outlined that its iShares Bitcoin Trust would only issue new shares if they were backed 1:1 with BTC.
Subsequently, other traditional financial institutions like Invesco and Wisdomtree have revisited previously rejected ETF applications, aligning with the growing trend.
SEC Approval and Market Impact
Investors are optimistic that the Securities and Exchange Commission’s approval of these new ETFs could lead to a significant increase in trading volumes for digital assets. Notably, the SEC has previously turned down spot bitcoin ETF applications.
In a surprising move, the SEC granted approval for a 2X leveraged bitcoin fund, considered to carry higher risk compared to a spot ETF. Volatility Shares’ 2X Bitcoin Strategy ETF is scheduled to trade under the BITX ticker starting June 27.
Despite challenges such as the FTX exchange collapse and a stringent regulatory landscape, the cryptocurrency sector has shown resilience. Cameron Winklevoss, founder of Gemini and Genesis crypto firms, emphasized the narrowing opportunity to invest in bitcoin before the potential influx of ETF investments.
